INDEPENDENT BANK CORP/MA (INDB) Stock Fundamental Analysis
NASDAQ:INDB - Nasdaq - US4538361084 - Common Stock - Currency: USD
Taking everything into account, INDB scores 4 out of 10 in our fundamental rating. INDB was compared to 397 industry peers in the Banks industry. The financial health of INDB is average, but there are quite some concerns on its profitability. INDB has a decent growth rate and is not valued too expensively. Finally INDB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year INDB was profitable.
INDB had a positive operating cash flow in the past year.
Each year in the past 5 years INDB has been profitable.
INDB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INDB has a Return On Assets of 0.99%. This is in the better half of the industry: INDB outperforms 66.00% of its industry peers.
The Return On Equity of INDB (6.42%) is worse than 67.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 6.42% | ||
| ROIC | N/A |
ROA(3y)1.2%
ROA(5y)1.02%
ROE(3y)7.94%
ROE(5y)6.99%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
INDB has a Profit Margin of 27.85%. This is in the better half of the industry: INDB outperforms 76.83% of its industry peers.
INDB's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for INDB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 27.85% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y5.31%
PM growth 5Y-3.04%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
INDB does not have a ROIC to compare to the WACC, probably because it is not profitable.
INDB has less shares outstanding than it did 1 year ago.
INDB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for INDB has been reduced compared to a year ago.
2.2 Solvency
INDB has a debt to FCF ratio of 0.30. This is a very positive value and a sign of high solvency as it would only need 0.30 years to pay back of all of its debts.
The Debt to FCF ratio of INDB (0.30) is better than 86.15% of its industry peers.
INDB has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
INDB has a better Debt to Equity ratio (0.02) than 85.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.3 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.79%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for INDB have decreased strongly by -13.32% in the last year.
INDB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.31% yearly.
Looking at the last year, INDB shows a decrease in Revenue. The Revenue has decreased by -1.52% in the last year.
The Revenue has been growing slightly by 6.29% on average over the past years.
EPS 1Y (TTM)-13.32%
EPS 3Y-4.78%
EPS 5Y-4.31%
EPS Q2Q%-5.36%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y10.77%
Revenue growth 5Y6.29%
Sales Q2Q%6.37%
3.2 Future
Based on estimates for the next years, INDB will show a very strong growth in Earnings Per Share. The EPS will grow by 24.01% on average per year.
Based on estimates for the next years, INDB will show a very strong growth in Revenue. The Revenue will grow by 21.93% on average per year.
EPS Next Y19.37%
EPS Next 2Y24.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.59%
Revenue Next 2Y21.93%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
INDB is valuated correctly with a Price/Earnings ratio of 13.86.
Compared to the rest of the industry, the Price/Earnings ratio of INDB indicates a slightly more expensive valuation: INDB is more expensive than 63.22% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. INDB is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.89, the valuation of INDB can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INDB indicates a somewhat cheap valuation: INDB is cheaper than 65.74% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, INDB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 8.89 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as INDB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.65 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
INDB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
INDB's earnings are expected to grow with 24.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y24.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
INDB has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.49, INDB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, INDB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
5.2 History
The dividend of INDB has a limited annual growth rate of 5.56%.
INDB has paid a dividend for at least 10 years, which is a reliable track record.
INDB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.56%
Div Incr Years14
Div Non Decr Years30
5.3 Sustainability
50.08% of the earnings are spent on dividend by INDB. This is a bit on the high side, but may be sustainable.
INDB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.08%
EPS Next 2Y24.01%
EPS Next 3YN/A
62.21
-0.09 (-0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners85.88%
Inst Owner Change-0.13%
Ins Owners0.82%
Ins Owner Change3.42%
Market Cap2.65B
Analysts80
Price Target74.97 (20.51%)
Short Float %3.84%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Yearly Dividend2.25
Dividend Growth(5Y)5.56%
DP50.08%
Div Incr Years14
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.05%
Min EPS beat(2)-6.14%
Max EPS beat(2)2.05%
EPS beat(4)2
Avg EPS beat(4)-0.56%
Min EPS beat(4)-6.14%
Max EPS beat(4)6.39%
EPS beat(8)4
Avg EPS beat(8)-1.47%
EPS beat(12)7
Avg EPS beat(12)-0.37%
EPS beat(16)11
Avg EPS beat(16)4.78%
Revenue beat(2)0
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-1.29%
Revenue beat(4)0
Avg Revenue beat(4)-1.88%
Min Revenue beat(4)-3.54%
Max Revenue beat(4)-1.01%
Revenue beat(8)0
Avg Revenue beat(8)-2.08%
Revenue beat(12)3
Avg Revenue beat(12)-1.57%
Revenue beat(16)4
Avg Revenue beat(16)-1.18%
PT rev (1m)-6.07%
PT rev (3m)-6.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.73%
EPS NY rev (1m)0%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 8.89 | ||
| P/S | 3.84 | ||
| P/FCF | 12.65 | ||
| P/OCF | 11.53 | ||
| P/B | 0.89 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.49
EY7.22%
EPS(NY)7
Fwd EY11.25%
FCF(TTM)4.92
FCFY7.9%
OCF(TTM)5.4
OCFY8.67%
SpS16.19
BVpS70.24
TBVpS46.84
PEG (NY)0.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 6.42% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 27.85% | ||
| GM | N/A | ||
| FCFM | 30.37% |
ROA(3y)1.2%
ROA(5y)1.02%
ROE(3y)7.94%
ROE(5y)6.99%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y5.31%
PM growth 5Y-3.04%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.3 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 49.98% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 109.06% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC12.79%
ROIC/WACCN/A
Cap/Depr(3y)50.27%
Cap/Depr(5y)54.76%
Cap/Sales(3y)2.72%
Cap/Sales(5y)3.15%
Profit Quality(3y)123.13%
Profit Quality(5y)109.73%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.32%
EPS 3Y-4.78%
EPS 5Y-4.31%
EPS Q2Q%-5.36%
EPS Next Y19.37%
EPS Next 2Y24.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y10.77%
Revenue growth 5Y6.29%
Sales Q2Q%6.37%
Revenue Next Year16.59%
Revenue Next 2Y21.93%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-19.78%
FCF growth 3Y8.28%
FCF growth 5Y0.94%
OCF growth 1Y-16.99%
OCF growth 3Y6.53%
OCF growth 5Y1.21%